PAWAN SYNTHETICS, MUMBAI V. ITO WD 18(1)(1), MUMBAI

ITA 4908/MUM/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3902 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 18-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 27-06-2013
• Court: TRIBUNAL
• Department Lawyers: S R KIRTNEY
• Assessee Lawyers: MEERCY BAJAJ
• Keywords: Opportunity of being heard; Principle of natural justice; Additional evidence
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER I.T.A. NO.4908/M/2013 (ASSESSMENT YEAR: 2008 - 2009 ) M/S. PAWA N SYNTHETICS, GROUND FLOOR, LAXMI INDUSTRIAL ESTATE, HANUMAN GALI, LOWER PAREL, MUMBAI 400 013. / VS. ITO - WARD 18(1)(1), PIRAMAL CHAMBERS, LALBAGH, PAREL, MUMBAI - 12. ./ PAN : AACFP9227E ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MEERCY BAJAJ / RESPONDENT BY : SHRI S.R. KIRTNEY, DR / DATE OF HEARING : 18.02.2016 / DATE OF PRONOUNCEMENT : 18 .02.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 27.6.2013 IS AGAINST THE ORDER OF THE CIT (A) - 16, MUMBAI DATED 19.4.2013 FOR THE ASSESSMENT YEAR 2008 - 2009. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING GROUND WHICH READ AS UNDER: - ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD CIT (A) HAS ERRED IN UPHOLDING THE ADDITION MADE BY THE AO BY DISALLOWING THE CLAIM OF EXPENDITURE INCURRED ON ACCOUNT OF JOB WORK CHARGED PAID TO M/S. VINOD TEXTILES FOR THE WORK WHICH APPELLANT GETS AND FOR WHICH IT DOE S NOT HAVE CAPACITY TO MAKE. THE SAME IS LIABLE FOR SET ASIDE. 2. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE BRIEFLY NARRATED THE FACTS OF THE CASE WHICH INCLUDE THAT THE ASSESSEE FILED THE RETURN OF INCOME DECLARING THE TOTAL INCOME AT RS. NIL . DURING THE ASSESSMENT, AO NOTICED THAT THE ASSESSEE DEBITED RS. 15,30,888/ - TOWARDS EXPENDITURE ON ACCOUNT OF JOB WORK CHARGES PAID TO THE ASSEESSEES CONCERN NAMED M/S. VINOD TEXTILES. IN THIS REGARD, NOT SATISFIED WITH THE EVIDENCES SUBMITTED BY THE ASSESSEE , AO DISALLOWED THE SAID AMOUNT OF RS. 15,30,888/ - AND ADDED THE SAME TO THE TOTAL INCOME ALONG WITH CERTAIN OTHER ADDITIONS. ACCORDINGLY, AO COMPLETED THE ASSESSMENT U/S 143(3) OF THE ACT AND THE 2 ASSESS ED INCOME WAS DETERMINED AT RS. NIL. AGGRIEVED, ASSE SSEE CARRIED THE MATTER IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 3. DURING THE PROCEEDINGS BEFORE THE FIRST APPELLATE AUTHORITY, AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, CIT (A) PARTLY ALLOWED THE APPEAL AND CONFIRMED THE ADDITION MADE BY THE AO TO THE EXTENT OF RS. 15,30,888/ - . AGAIN AGGRIEVED, ASSESSEE FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL BY RAISING THE ABOVE MENTIONED GROUND. 4. DURING THE PROCEEDINGS BEFORE US, AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ADDIT ION MADE BY THE AO IN RESPECT OF JOB WORKS GOT IT DONE BY THE ASSESSEE FROM ITS SISTER CONCERN IE M/S. VINOD TEXTILES. ASSESSEE INCURRED EXPENDITURE IN RESPECT OF THE PAYMENTS MADE TO THE SISTER CONCERN. THERE WAS A FAILURE OF THE ASSESSEE BEFORE THE REV ENUE AUTHORITIES IN FILING THE DIRECT EVIDENCES REFLECTING THE TRANSPORT OF RAW MATERIALS SUPPLIED TO THE SISTER CONCERN BY THE ASSESSEE AND THE TRANSPORT OF FINISHED GOODS RETURNED TO THE ASSESSEE AFTER JOB WORKS. THERE ARE OTHER DEFECTS FROM THE ASSESSE ES SIDE. IN THIS REGARD, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE PAPER BOOK AND SUBMITTED THAT PAGES 96 TO 121 CONSTITUTES ADDITIONAL EVIDENCES AND THE SAME IS REQUIRED TO BE ADMITTED AS THEY GO TO THE ROOT OF THE MATTER AND THESE PAPERS WERE NOT AV AILABLE TO THE OFFICERS BELOW. THEREFORE, IT IS THE SUBMISSION OF THE LD COUNSEL THAT THE SAID ADDITIONAL EVIDENCES SHOULD BE ADMITTED AND MATTER MAY BE REMANDED FOR FRESH ADJURATION. 5. ON THE OTHER HAND, LD DR FOR THE REVENUE RELIED ON THE O RDERS OF THE AO AND THE CIT (A). 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE RELEVANT MATERIAL PLACED BEFORE US. AFTER HEARING BOTH THE PARTIES AND ON FINDING THAT THE SAID PAPERS (PAGES FROM 96 TO 12 1 OF THE PAPER BOOK) UNDISPUTEDLY CONSTITUTE ADDITIONAL EVIDENCES AND THEY GO TO THE ROOT OF THE MATTER AND THEREFORE, WE ADMIT THE SAME IN THE INTEREST OF JUSTICE. ACCORDINGLY, AS PRAYED BY THE LD COUNSEL FOR THE ASSESSEE, WE REMAND THE ISSUE TO THE FILE OF THE AO FOR FRESH ADJUDICATION OF THE ENTIRE ISSUE RAISED IN THE GROUNDS. AO SHALL GRANT A 3 REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS PER THE SET PRINCIPLES OF NATURAL JUSTICE. ACCORDINGLY, GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR ST ATISTICAL PURPOSES. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNC ED IN THE OPEN COURT ON 1 8 T H FEBRUARY, 2016. S D / - S D / - ( PAWAN SINGH ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 1 8 .2.2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI